Plan for First rental property
I recently (about a month ago) bought myself a fourplex to rent. This is the first building that I've ever purchased and I'm curious as to how you all think I made out:
Sale price of $130,000 (however I did an FHA loan for the down payment so the total price was $136,900 with the $6900 gifted back to me). At $475 rent I'm having an easy time getting people to come in and look at the property although I still have one vacancy. Taxes are approx. $2300 annually and insurance is $1200 annually as well. Interest rate on the loan is 6%.
I figured it up and including all of the maintenance that I've put into the building I'm going to be about even for this year on a cash basis (I had to repair some flooring, doors, etc.). Add back the tax benefits from starting up my own business and I'm showing a small profit (ROI, not including any appreciation, is around 3%). Is this below average for the first timer?